America Takes a Hard Line with China at Summit

United States Secretary of the Treasury Steven Mnuchin | January 11, 2018 (Official White House Photo by Andrea Hanks)

A U.S. delegation to China, led by Treasury Secretary Steve Mnuchin has demanded China take steps to narrow the trade deficit with America to $200 billion by 2020. Also targeted by the team were China’s state subsidies for strategic industries. Gabriel Wildau reports:

The target represents a doubling of a previous White House demand that China cut the bilateral deficit by $100bn.

The negotiators also asked that Beijing cut import tariffs to levels at or below those imposed by the US on the same goods from China.

The proposal further calls on Beijing to eliminate all subsidies linked to its “Made in China 2025” industrial policy. The plan is designed to promote Chinese leadership in advanced industries including robotics, aerospace and electric vehicles.

Mnuchin on trade with China: Cautiously optimistic about meetings

Jeremy Jones, CFA

Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.